Does a Buyer Have Standing to Sue an Appraiser in Florida for Negligence?

[Salty]

Salty - the lender has QC checks for the mortgage loan - more than just checking the appraisal. There are checks for fraud and yes, sometimes the lender misses it as apparently it was missed in this case. I don't believe that the borrower is innocent at all as there are too many areas on the mortgage app and throughout the process where the buyer/borrower has to attest to the property as a primary residence. There are also many references to the limited number of days in the year (max days) the borrower is allowed to live in the property in the condo-tel docs. This was no accident IMO. That's why the buyer/borrower needs an attorney.

Makes me wonder what was happening at the settlement table, the title search, underwriting etc...

 

[George Hatch]

I'm the one who offered that "if i had known" gambit up, and you're right: it is a cynical and specious argument. Nevertheless, if they make it then the appraiser is in the position of having to prove otherwise, which is easier said than done. My point was that an appraiser who has made an avoidable error in their appraisal does not have a defensible position in a situation like this. The final number on the bottom line is not a defense.

 

[Deleted member 152047]

How would a lawsuit take two to three years to complete or take tens of thousands of dollars? He could sue in small claims for up to $8,000. Not sure where you are from, but a suit would probably be for $15k or so, if he didn't elect to go the small claims route. I am just trying to give input, since I am a friend.

I live in Florida and have paid to sue people. My cheapest lawsuit was $10k in attorney's fees and we settled out of court. The most expensive was nearly $30k and we settled out of court. When you hire an attorney and get to court you will drop $20k in the blink of an eye.

I can also say that just for my expert testimony on a variety of real estate cases, I have never charged less than $5k. (Edit) BTW, he (you) will likely need at least one expert witness if you plan on suing the appraiser.

 

[ramrcdk]

ramrcdk said:
Once I called Zoning. Zoning is a Big word. The personnel I spoke with said "No, does not comply with zoning." Since there were other-a few in the same area, I called back and ask a different person at the Zoning Office to forward the respective ordinances, etc. because I could not find online & needed.
Turns out personnel #1 was not UP on the current information as same had been RE-zoned to allow many years prior.
Sounds like our Tax Dept. where permitted changes rarely are changed-updated from the initial permit.

Simple reason why we are to do Our own due diligence, best advice is to do your own research in person so you can review the correct documents. Can't tell you how many times I had conflicting input from different zoning reps. over the years. Do we know what the "pre-existing" zoning permitted ? there is always more than phone call satisfaction IMO.

Yes Jay and the reason I caught the zoning error was the initial -correct conflicting information ON A double check-call ...due diligence which called for a THIRD check.

 

[TD Morgan]

Yeah I don't buy it. Its not the appraiser's job to determine this. The appraiser reported the zoning. Done. Who says the appraiser did not properly research the zoning? Why should the appraiser specify anything about permanent residency? Its not the appraiser's concern unless this impacts value. It appears it does not. The appraiser is there to properly value the unit. The buyer could have easily looked up the requirements of this particular zoning code. The appraiser is not preparing a report for a person who needs hand-holding. The report is for the lender. Now, if the buyer had engaged their own appraiser this may be different as the report should be tailored to the intended user.

Not sure you read everything I wrote. The appraiser said that multi-family was legal use. It is not.

You are saying the appraiser has no responsibility if his conclusions cause a loss to a buyer?

The appraiser would know what is required for a VA-guaranteed mortgage, would he not? Shouldn't his Highest and Best Use have been completed and asked the question about legally permissible uses? Multi-family is not a permitted use, neither is permanent residency, which is required by the client and user of the report.

 

[TD Morgan]

View attachment 48474

I'm the one who offered that "if i had known" gambit up, and you're right: it is a cynical and specious argument. Nevertheless, if they make it then the appraiser is in the position of having to prove otherwise, which is easier said than done. My point was that an appraiser who has made an avoidable error in their appraisal does not have a defensible position in a situation like this. The final number on the bottom line is not a defense.

I reached out to the lender to get this information. Not sure why it is far-fetched when it is factual. (I think the quote I am responding to came from someone else.)

 

[TD Morgan]

I live in Florida and have paid to sue people. My cheapest lawsuit was $10k in attorney's fees and we settled out of court. The most expensive was nearly $30k and we settled out of court. When you hire an attorney and get to court you will drop $20k in the blink of an eye.

I can also say that just for my expert testimony on a variety of real estate cases, I have never charged less than $5k. (Edit) BTW, he (you) will likely need at least one expert witness if you plan on suing the appraiser.

He/You? Not clear you understand what I wrote if you didn't catch the details.

 

[Deleted member 152047]

He/You? Not clear you understand what I wrote if you didn't catch the details.

Just asking for a friend...

 

[TD Morgan]

Just asking for a friend...

Still not sure what you mean. Are you presuming that I am asking for myself?

 

[TD Morgan]

I live in Florida and have paid to sue people. My cheapest lawsuit was $10k in attorney's fees and we settled out of court. The most expensive was nearly $30k and we settled out of court. When you hire an attorney and get to court you will drop $20k in the blink of an eye.

I can also say that just for my expert testimony on a variety of real estate cases, I have never charged less than $5k. (Edit) BTW, he (you) will likely need at least one expert witness if you plan on suing the appraiser.

Are you suggesting that the buyer sue in small claims to avoid legal fees?